In 2049, the new Terran Defense Agency chose to update the Cutlass design and use it as the basis for the Solar System local defense forces. The main changes were an engine upgrade and replacing the emergency rescue and repair storage facilities with nuclear weapons pods and laserlances.

Following the end of the war in 2068, no more Mk. IIs were commissioned, although they continued to be used, some leant to FLEA by the TDA. They were durable enough that, as of 2100, over 80 Mk. IIs were still in service, and its became popular for replicas equippment with modern technology to be made.